London HQ of merged stock exchange in doubt after Brexit

Share

William Turvill

I write about M&A, deals, IPOs, private equity, asset management, media and a few other areas for City A.M. I also write news features and am always interested in interviewing and profiling high-profile business figures. I previously worked for Press Gazette and Mail Online.

Follow William

The London Stock Exchange and Deutsche Boerse have said they remain "fully committed" to their merger after Brexit (Source: Getty)

William Turvill

London's position as the world’s leading financial hub could be dealt a symbolic blow, with doubts being cast over the location of its stock exchange’s merged headquarters with Deutsche Boerse.

The London Stock Exchange (LSE) is locked in merger talks with its German equivalent, and shareholders are set to vote on the deal next week.

To date, executives on both sides have publicly committed to keeping the combined organisation’s HQ in London.

But sources close to the deal have told City A.M. that the location of the holding company is to be debated at a senior level.

An LSE spokesman said: “This is untrue. Both companies have said, and re-confirmed on Friday, that we remain fully committed to the agreed and binding merger terms, and continue the process of obtaining the necessary approvals.”

Mark Field, Conservative MP for the Cities of London and Westminster, told City A.M. there is no need for the headquarters to be moved after the Brexit vote.

“I don’t think there’s anything material that has happened that should [lead] to any change,” he said. “The fact that we’re outside the Eurozone already means nothing materially has changed. It’s a global exchange and will remain so.”

Field added: “Ultimately, it will be for the exchanges to decide where the HQ should be. And I don’t think the Brexit decision, other than in relation to sentiment, has any material impact on the business case for having the HQ in London, which was what was intended before.”